What is the globalization?

What is the globalization?

Globalization refers to the acceleration of movement and exchange (of human beings, products and services, capital, technology or cultural practices) around the world.

Why does activist demonstrate against globalization?

Activists are fighting against globalization because there are many disadvantages to it:

• The delocalization of jobs, the countries where the labor force will be strongly favored in the production as opposed to the countries where the labor force is more expensive because the companies want to save as much money as possible.

• Loss of cultural identity: products that are supposed to be local and made by qualified craftsmen and reflecting the culture of a city or even a country tend to disappear because the big factories with their robots and machines produce more and faster.

Since when CSR become an official issue in Europe?

Corporate social responsibility (CSR) refers to the consideration by companies, on a voluntary and sometimes legal basis, of environmental, social, economic and ethical issues in their activities. The activities of companies are understood here in a broad sense: economic activities, internal interactions (employees) and external interactions (suppliers, customers).

the concept of CSR has only appeared in Europe since the year 2000, which is very recent. we can see that it has quickly become very important because many European treaties are now in force.

Globalization for companies

Globalization for companies allows them to optimize production costs by having the least expensive products manufactured.

Globalization, for companies is also synonymous with investment, in order to enter international markets, companies have recourse to "new" practices such as the stock exchange, for example, or "business angels" who can invest without counting the cost, but who, like shareholders, only expect results.

Globalization also makes it possible to sell its products or services all over the world, which increases the production of wealth for companies that go international.

On the other hand, for smaller companies that remain national, regional or local, globalization represents a threat because the international giants compete with them with much cheaper products, so they lose a lot of customers.

Then, because of the international competition due to globalization, in order to stand out and give a good image, companies must have a CSR (which is a relatively new term: 1960). That is, they must pay attention to ecology, ethics, etc.

Finally, globalization can allow companies to grow very quickly since many international markets are open to all.

Globalization for customers

the more competitors there are in a market, the better it is for the consumer. the consumer will be better informed, will have a better-quality product and, above all, will pay less for a product that is in a hyper-competitive market than for a product in a market with a monopoly.

Globalization also leads to a more or less high increase in economic growth in the developed countries, which increases the purchasing power of consumers. Globalization has also made technology accessible to all.

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